Momentum is building in Indo-Israeli relations as the first phase of Free Trade Agreement (FTA) talks unfolded in New Delhi from February 23 to 26. This development precedes Prime Minister Narendra Modi’s high-profile visit to Israel on February 25-26, 2026, underscoring a shared vision for enhanced commerce.
According to the Commerce and Industry Ministry, the negotiations follow the signing of a Terms of Reference in Tel Aviv last November. Trade volumes between the two nations stood at $3.62 billion for FY 2024-25, driven by mutual complementarities. The prospective FTA promises stability and predictability for enterprises, including MSMEs, fueling bilateral trade growth.
The agenda spans trade in goods and services, rules of origin, SPS measures, TBTs, customs and trade facilitation, and intellectual property. Commerce Secretary Rajesh Agarwal opened the session by linking the talks to PM Modi’s itinerary and spotlighting opportunities in innovation, S&T, AI, cyber defenses, hi-tech production, farming, and service sectors.
Agarwal noted, ‘The FTA will unlock these potentials comprehensively.’ Chief negotiator Ajay Bhadu called for a balanced outcome to shape a progressive partnership framework. Israel’s Yifat Alon Perel praised the strong bilateral bonds, envisioning the deal as a catalyst for supply chain fortification, deeper cooperation, and fresh market avenues.
These talks illuminate the strategic essence of India-Israel engagement and India’s resolve to bolster economic ties in line with national and global imperatives. With both sides eyeing a reciprocal, advantageous agreement, the future looks bright for this dynamic duo.